Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
; e: y4 i! [: ]( U& f! W2 J( dBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
5 e6 @3 d, f- }' s- C# H6 jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
0 i3 x. N' L% ]# Athese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
( w( i, N, R! Y5 b5 p; `2 i6 N) fEXXON, BG, BP, Cheveron ....xyz.. oils

. E: p$ ?: N" Y# l) t7 c* PRecently OPEC reduced crude oil production twice over just a few
5 C0 J' \2 K3 n6 t' i0 U9 \months. There are three wars going on in Gaza, Iraq and Afghandistan.
8 C  k, W3 w; g: \7 GA year ago these things would have spiked the price of crude oil by at
1 @6 p7 Q$ [  c( ]3 o3 zleast $50.00 per barrel. Today, oil price declined by a record amount.

6 S% h4 ?) p" f
; [* }  u, {9 l. H" p3 k7 [9 MThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


- F. S% C8 u$ _! c/ U1. New oil has been found in Canada, Montana, North & South Dakota and
( F. [2 D) E/ o! ^' ^in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
8 J+ w( d0 t9 @8 ^( A3 q- A' h) N$ W
2 \+ u- v" z1 V! m/ g5 W8 X
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
+ E  n7 N+ z/ |9 ]0 ~5 [
4 k# I" U/ [8 a" G- j* C/ {
- R& J( }4 ^: l7 o- p) f3. New methods of injecting CO2 and surfactants into oil wells is
# i# `+ ]7 z7 U& L9 s# F: l  M) i  {being used to double their output.
6 w2 F) e! [( G
8 p4 Q( ?3 Z# b
4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
) |1 ^! @9 a, A6 f0 dracing to produce bio fuels.
% |# C8 l: k2 A

5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
0 a$ v$ ^$ D  ]3 N1 ^% }5 {cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
3 p, W- `% Y4 \8 N

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
5 D; k2 G* g. ^6 p, ~1 c% Eexpected to be built in the future. Much of the energy they produce
/ Y; G9 _  Q5 g5 N  P% Gwill replace oil.


& x5 V  e1 l) d, R7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
1 o+ @3 Z5 F% ware experiencing 20% to 25% better fuel econony with the new
equipment.
- _7 c# ]" G: J0 \
. F* v+ S; S# h* f
0 v% ^' s. L, q: Z4 @( FAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


& h" V5 P, L# \0 a8. Cities and counties throughout the US are selling the rights to
4 Y: T- Y( u# B9 _+ Qcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
0 ]. a& {5 V; H0 q& z! Goil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
" H# r. X9 U2 ], k9 e9 I* O# H4 b/ dproduced as a byproduct is sold to oil companies for injection into
% \  ?' \9 X6 S+ coil wells.


0 ]* w9 a+ J7 N2 m10. Solar, wind and ocean energy is displacing oil as an energy
4 k8 ^; ^3 r5 X: Qsource. Three new wind turbines are being erected every day in the US.
4 X  E/ e$ [! R

' m- D4 f6 C. i# X- H0 p9 U+ WEach of the above by itself will not make a large difference in the
5 Q9 H% C# [/ o4 ~5 Zprice of crude oil but the sum of all of them together is world
6 J) i8 [. m# S$ }' T; Dchanging. The important thing is that OPEC no longer has the ability
to control oil prices.

8 L! i, G3 N, l
With the above scenario, I still believe that there are under
+ x7 @1 Y8 ]) p' X9 W: D/ aperformed OIL companies and probably they are yet to get the justified
value .....
# x. I. p5 g' b6 Z/ \+ g7 eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

4 o" R* S4 y. V% |: d  U) K
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only